HSE HR Circular 012/ th May 2013

Transcription

1 Oifig an Stiúrthóra Náisiúnta, Acmhainní Daonna Feidhmeannacht na Seirbhísí Sláinte Ospidéal Dr. Steevens Baile Átha Cliath 8 Office of the National Director of Human Resources Health Service Executive Dr. Steevens Hospital Dublin 8 Rphost/ nationalhr@hse.ie All Queries: Ms. Fionnuala O Brien, National HR Services, Merchants Quay, Dublin fionnuala.obrien1@hse.ie 29 th May 2013 TO: RE: Each Member of Management Team, HSE; Each Regional Director of Operations, HSE; Each Assistant National Director of Human Resources, HSE; Each Employee Relations Manager, HSE; Each CEO & HR Manager, Intellectual Disability Sector Each CEO & HR Manager directly funded Voluntary Hospital / Agency; National Protocol for PRSI Classification The National Review Group for PRSI classification has reported back with an agreed national protocol. The membership was drawn from our colleagues in the HSE, the Voluntary Hospitals and the Dublin Academic Teaching Hospitals. The Terms of Reference agreed by the group outlined two objectives: 1. Agree a national protocol on how to manage the misclassification of PRSI and put our proposal to the Department of Social Protection (DSP) Section. 2. Investigate the extent of the issue throughout the HSE/DATHs/Voluntary Sectors. Members of the group met with the Section of the DSP several times for clarifications and to progress standardisation on the process for the correction of misclassifications. The group also engaged with Arthur Cox, Solicitors in relation to legal opinion on issues of employers liability and that advice determined some of the protocol. I have reviewed the report submitted and documents contained therein and approve the implementation of this national protocol for the HSE and HSE funded Agencies. Page 1 of 11

2 The National Protocol to resolve misclassified cases outlines the tasks, owners and outcomes required to be completed to ensure cases are resolved in a consistent manner across the Health Section. (Appendix 1 refers). It has been further agreed with /DSP: A one page authorisation/offset document can be completed by the employee if they wish their PRSI refund to offset against their shortfall in pension contributions (Appendix 2 refers). The calculation sheet enables employers to outline exactly what is paid versus what should have been paid particularly in terms of PRSI. (Appendix 3 refers). This calculation sheet should be returned to /DSP where they will complete their section. There is a finite timeframe for this element of the process. It is used to speed up the processing of claims that have built up over time. (Appendix 3 refers). In relation to objective 2 above, to assist in reporting on the financial position a spreadsheet should be completed and returned on a quarterly basis confirming what cases are closed and the income and expenditure from those cases. Appendix 4 refers. Please bring this to the attention of all relevant staff. If you have any queries on the content of this circular please contact Ms. Fionnuala O Brien, National HR Services, Merchants Quay, Dublin 8, (01) or by fionnuala.obrien1@hse.ie. Yours sincerely, Barry O Brien National Director Human Resources Appendix 1: National Protocol for the HSE and HSE Funded Agencies at May 2013 Appendix 2: Authorisation/offset Form Appendix 3: Calculation Sheet Appendix 4: Income and Expenditure Return Page 2 of 11

3 Appendix 1 National Protocol for the HSE and HSE Funded Agencies at May 2013 Tasks Task Description Owner Outcome 1 Initial notification letter to staff suggesting their PRSI classification may be incorrect Employee now knows their employment history is being sent to to determine 2 Send request for determination to 3 notify employee and employer of their decision 4 If PRSI is incorrect the employer changes the record of the employee 5 Write to employee and confirm record is changed 6 Balancing statement required from for each employee 7 standard calculation sheet to be completed. 8 Part A of standard calculation sheet (part in red) 9 Part B of standard calculation sheet also check refund years (part in red) 10 Part C of standard calculation sheet (part in red) PRSI classification Deciding Officer in reviews case PRSI may be reclassified Changed class on payroll record and personnel record / will know what has to be paid back to the employee from issued Being reviewed by Finance HSE (s/s attached) Superannuation/Pensions Amount of pension contributions underpaid Payroll/ Employee PRSI that was paid against what should have been paid (PY) less Social Insurance Benefits (if any) () Payroll//Receipts PRSI amount paid over against what should have been paid (PY) Page 3 of 11

4 Tasks Task Description Owner Outcome less Social Insurance Benefits (if any) ( and Receipts) 11 Offset Authorisation form requested to be completed by employee and returned to within 28 days. Not applicable to retirees who have already had their superannuation contributions deduced from their lump sum. 12 Part A of Authorisation form deleted. Agreed with HSE/ 13 Part B of standard calculation sheet completed by (part in black) 14 If calculations show monies can be offset against employee refund then inform the employer and request them to check with the employee if they wish to sign off the Authorisation form 15 Invite the employee affected to a meeting re balancing of monies due (pension contributions underpaid) and monies to be refunded (overpayment of PRSI past the 4 year rule) / Part payment to cover underpayment of pension contributions by employee if they agree to that. refund will be refunded by to the less Social Insurance Benefits (if any) Now know exact amounts of refunds Now know exact amounts of refunds Employee will understand their position. Authorisation form can be signed by the employee if they agree to use their PRSI refund from to pay off the underpayment of pension contributions. (Optional on the part of the employee, Page 4 of 11

5 Tasks Task Description Owner Outcome cannot legally enforce this re Arthur Cox advice) 16 Authorisation form amended and agreed between and the employer: I hereby authorise that should there be a net refund of my PRSI overpayment (less benefits drawn down) that it be paid over to my employer as part payment of my pension contribution underpayment. 17 Deleted Authorisation form part A: authorises to pay over shortfall (4 year rule) of PRSI refund from employers 4 years PRSI refund. / National Review Group recommends employer PRSI refund is paid in full (for the 4 years if applicable) to the current employer. Authorisation form amended by the employer Simplifies the form. Agreed with. 18 s PRSI to come from. Refund of full 4 years PRSI refund to be paid to the employer less Social Insurance Benefits (if any). 19 Monitor and record all payments due and received from 20 Tax rebate for the years superannuation was underpaid. to issue, on request, a letter confirming superannuation contribution paid over. 21 Refund of over deducted PRSI to the individual The full PRSI refund to be lodged to employers accounts. Monies due to the employer from overpayment of PRSI on individuals. Reviewed by Finance and SOP remains in place. The employee takes the letter to their tax office. 4 years refund of EE PRSI from DSP/ less any Page 5 of 11

6 Tasks Task Description Owner Outcome benefits drawn down for the totality of the years of the error. 22 Determine the employer s liability to their employee. Charge to current/last cost centre of the employee. / Balancing statement from DSP/ to employer to determine employers liability for previous years. As per calculation sheet. 23 Recovery of underpaid pension contributions from the employee. Use offset Authorisation Form, if not agreed by with the employee then the employer must write to the employee once the employee has been refunded their portion from DSP. 24 Recovery of overpaid employer PRSI. to issue cheque to relevant employer 25 Refund cheques to employer from 26 Balancing payments to be issued Multiple s Issue Single/Current/Final Where an employee has been employed by many employers and the error is discovered with current/final employer Current/Final employer deals with the pension underpayment as they Current employer will know when the employee has been refunded as the employer will also get their refund or balancing statement from DSP. revenue stream increases by 4 years overpayment of employer PRSI. Returned to current relevant cost centre the employee is or was last coded to Employee refunded Clear for employee in relation to pension underpayments and who get what Page 6 of 11

7 Tasks Task Description Owner Outcome will be paying the pension. Follow the above procedure. Current employer acts as a co-ordinator. Current employer makes aware of employment history. Request for calculations from previous employers Where the error happened under the employment of a previous employer Each employment is dealt with independently in relation to liability and refund on the PRSI issue. Current employer/previous employers Previous employer /Previous s Co-ordinated by current employer Makes it easier for and the employee to dealing with the current employer in their coordinating role. That portion of employment for PRSI refund must be borne by the previous employer and not the current. PRSI shortfall paid by the relevant employer(s) to the former employee for that period of time. Page 7 of 11

8 Appendix 2 LOGO & Personalise for Agency Where there is: Authorisation (Offset Form) Form to the Department of Social Protection (DSP) //Agency name A shortfall in employee superannuation contribution and overpayment of PRSI contributions PRINT NAME: PPSN: PERSONNEL NO. EMPLOYER: LOCATION: I understand that I have (i) underpaid superannuation contributions and (ii) have overpaid PRSI contributions (at Class A rather than Class D rate) for the period from to. I note that I will be required to pay superannuation contributions, which have to date been underpaid, in order to receive my full superannuation entitlement and I hereby consent to the proposal that should there be a refund due to me, all refunds of PRSI overpayments ( whether payable by the DSP or/and paid by the HSE)* will be applied to satisfy (in full or in part) the underpaid superannuation contributions. I hereby confirm that the DSP and/or the HSE is authorised to apply refunds of PRSI overpayments in the manner specified above (i.e. to satisfy any underpayment of my employee superannuation contributions). I understand that if the refund of PRSI overpayments (whether payable by DSP or paid by the HSE) exceeds the underpaid superannuation contributions, I will receive a payment in respect of the amount by which the refund of PRSI overpayments exceeds the underpaid superannuation contributions. I also understand that if that refund of PRSI overpayments is less than the underpaid superannuation contributions, I will remain liable for any unpaid balance. Signed Date *Tick as appropriate Page 8 of 11

9 Appendix 3 Calculation Sheet (e.g. employee shortfall) Ref: SC 00/2010 NAME Joe Bloggs PPSN 1x3x5x7 Z Location /Agency & Location Personnel No. Calculated by Payroll, Pensions or HR Unit - as appropriate xxxxx A. PENSION contributions shortfall - full period of correction Pension contributions payable : at un-co-ordinated rate Pension contributions paid : at co-ordinated rate Total Shortfall in EE Pension Cons. - full period Plus / Less Temp Service 0 - (i.e. EE pension contributions shortfall - full period) PRSI 4 year statutory limitation period ( 2007 to 2011 ) B. PRSI : EMPLOYEE (EE) POSITION CLASS A rate paid CLASS D rate payable Excess Employee PRSI (deducted in error by ) Less: Social Insurance Benefits (if any) to the Employee (e.g. dental/optical, benefits not transferred to employer) 0 Net Employee (EE) PRSI sums over-deducted ( = B.1) (i.e. statutory EE amount available Page 9 of 11

10 from DSP) C. PRSI : EMPLOYER (ER) POSITION CLASS A rate paid CLASS D rate payable Excess PRSI applied 0 Less: Social Insurance Benefits (if any) to the (e.g. maternity/illness etc. to the benefit of employer) Net (ER) PRSI sums over-applied ( = C.1) (i.e. statutory ER amount available from DSP) Page 10 of 11

11 Appendix 4 Income and Expenditure Return PPS Number First name Last name Registered Number Ref Date from which PRSI class is to be changed Start date of 4 year period covered by (e.g. 1/1/2009 for cases identified in 2013) Corrected PRSI class (as determined by ) Employee pension liability (show negative figure if refund due) PRSI overpayment due from Employee PRSI overpayment for period not covered by (due to be refunded by the ) Page 11 of 11